Ominous Signs for USD From Geithner’s Bankers
Robert Wenzel has reported two disturbing events that portend for a falling dollar. The first is the Chinese central bank’s decision to buy about $50 billion worth of bonds issued by the IMF that are denominated in “special drawing rights” (SDRs), which is basically a basket of world currencies. (This is the first time the IMF has ever done such a transaction.) Many analysts think that the IMF SDRs will replace the dollar as the international reserve currency. (The basket would of course include the USD.)
In other news, Hong Kong is pulling its gold reserves from around the world and storing them in a new home-built facility. True, that could mean nothing, but as Wenzel says, “[T]his smells like Hong Kong wanting to keep an eye on its gold and wanting to directly control the gold during very delicate times.”
